Special-Interest PACs Guard Tax Loopholes

A new analysis shows that three dozen of North Carolina’s biggest political action committees (PACs) donated $7 million to state candidates and political parties in the last election – and now many of the groups are scrambling to make sure their interests, including tax breaks worth at least $1 billion a year, are not harmed in the new budget being hammered out in Raleigh.

The list of top PACs includes groups of developers, attorneys, university patrons, doctors, auto dealers, state employees, teachers, and beer wholesalers, as well as executives with blue-chip firms like Progress Energy, Wachovia, Blue Cross, AT&T, and Nationwide Insurance.

The analysis by the watchdog group Democracy North Carolina shows that legislative winners in 2008 received 94 percent of the $5.7 million the big PACs donated to all legislative candidates. The PACs also gave $770,000 to gubernatorial and other statewide candidates, as well as $590,000 to political party committees, much of which gets funneled into legislative races.

On September 16, 2008 the NC Realtors Association PAC sent 106 legislative candidates a total of $169,500 in donations. The same day, the NC Telephone Cooperative’s PAC sent $66,800 to 75 legislators. The next day, the Blue Cross PAC sent $42,200 to 45 candidates and two weeks later, Bank of America’s PAC gave 84 legislative candidates $118,250. And on and on it went.

But now the budget crisis is forcing elected leaders to make hard choices that affect big donors and pit one powerful lobby against another.

Teachers are holding rallies against cuts in the education budget, and the NC Beer & Wine Wholesalers Association is running full-page ads against proposals to increase the tax on its products. Both groups have PACs that gave more than $100,000 in direct contributions in 2008, plus at least another $100,000 through affiliated groups and individuals.

One Comment

I’m a commercial fisherman fighting the Royal Bank of Canada (RBC Bank) over a $100,000 loan mistake. I lost my home, fishing vessel and equipment. Help me fight this corporate bully by closing your RBC Bank account.

There was no monthly interest payment date or amount of interest payable per month on my loan agreement. Date of first installment payment (Principal + interest) is approximately 1 year from the signing of my contract.
Demand loan agreements signed by other fishermen around the same time disclosed monthly interest payment dates and interest amounts payable per month.The lending policy for fishermen did change at RBC from one payment (principal + interest) per year for fishing loans to principal paid yearly with interest paid monthly. This lending practice was in place when I approached RBC.
Only problem is the loans officer was a replacement who wasn’t familiar with these type of loans. She never informed me verbally or in writing about this new criteria.